National Republican., 1887-11-18
BADLY EMBARRASSED.
The Twelfth Building Association o
GpnrQpfnwn.


Three or four building associations OF
Georgetown seem to have had pretty Sc
we're experience financially, owing, as It is
claimed, to the misdongs of the secretary.
for II seems that one person occupied that
position in all the associations. Some OF
them have tried In the civil courts to re.
cover sums of money claimed to be due,
Will G the aid of the criminal court has been
invoked TO punish those charged with violat-
ing the law. The last to invoke fight Is
Daniel Mclaughlin, who will probably un-
cover some OF the transactions of the
Twelfth Building Association, through mis-
attorney, Mr.. Frank T. Browning.
By a bill In equity fled yesterday he
complains that In consequence OF the de-
moralized state Of Its affairs II has become
impossible to continue the business of the
association, and that the members a short
time ago resolved to invoke the aid OF the
equity court in winding It up, through the
appointment of a receiver TO collect Its
lawful demands, to convert It's assets into
money, and to pay of Just claims against
II. The facts alleged IN the bill are that
the association was organized July q,
1871, elected officers, and began 90 do
business according to certain arti-
cles Of agreement called a constitution.
That in the month OF November, 1886,
gross irregularities were discovered in the
personal account of the secretary, Ferdi-
nand King, and In his account as trustee
for John w. Lumsdep, which consisted In
the improper and fraudulent obtainment
various times by said King from the treas =
ury OF large sums OF money, and the con-
version of the same to his own use, nomi.
nally through cancellations and redemp.
tions Of stock, and advances upon the same;
that this was done without the knowledge
or authority of the board OF directors, and
when the monthly dues upon said stock
had not been paid and was largely IN ar
rtaTs; tBat for the said advances the assOcia-
ton has no security, and that the said King
is insolvent, and that the aggregate OF his
indebtedness to the association in the above
accounts is $2.74090; that iu the trausac.
tion Of the business OF the association a
book was kept containing orders on the
treasurer, printed in blank to be flied up,
signed by the president, and attested by the
secretary, and issued as the lawful occasions
of the association might require. That the
former president OF the association, William
Clabaugh, improvidenty and In disregard
OF his duty signed without any order Of the
board Of directors large numbers OF said
orders In advance OF any requirement for
their use IN the business Of the association,
and allowed them to remain in the posses.
sion Of said secretary, and that these were
wrongfully and fraudulently filled up over
the said signature by the said King for the
amounts he desired, and upon them said
moneys were obtained from the treasurer.
1t is also charged that the finance commit
tee failed to make proper inquiry as to the
condition Of the accounts, but reported
them as correct. The stockholders those
who have not received advances-have due
them $2,3i3.91, including $2G3 due the com
plainant, for which he has received orders
on the treasurer, but cannot collect the
mOney.